C213 WGU OA PREP EXAM QUESTIONS &
ELABORATED COMPLETE SOLUTIONS
1. The ability a company has to pay its
Liquidity
debts in the short run is its
2. Which of the following is a measure
Debt ratio
of the liquid position of a
corporation?
Debt Ratio
3. Which of the following ratios is used
to mea- sure a firm's leverage?
Return on Equity
4. Which of the following ratios is used
to mea- sure the profit earned on each
dollar invested in a firm?
Investors and creditors
5. The emphasis in financial accounting is
on which of the following external user
groups? Management
6. The primary internal group that uses
ac- counting information is
7. Internal reports are generally used by Management
8. Which of the following is NOT an Management
external user of financial
information?
It is a government agency
9. Which of the following is NOT true of
the Fi- nancial Accounting Standards
Board (FASB)?
10. Generally accepted accounting principles are Developed by accounting
rule makers
1/
47
,C213 WGU OA PREP EXAM QUESTIONS &
ELABORATED COMPLETE SOLUTIONS
11. The initials GAAP stand for Generally Accepted Accounting
Princi- ples
12. The current standard-setting board Financial Accounting Standards
for ac- counting in the private sector Board (FASB)
is the
2/
47
,C213 WGU OA PREP EXAM QUESTIONS &
ELABORATED COMPLETE SOLUTIONS
13. The organization that develops worldwide ac- International Accounting
Standards
counting standards is the Board (IASB)
14. The initials CPA stand for Certified Public Accountant
15. Which of the following is NOT a Making management decisions
service typ- ically provided by large
public accounting firms?
16. Standards established by the International Financial Reporting
International Accounting Standards Stan- dards
Board are referred to as
17. Which of the following is the Internal Revenue Service
government agency that stipulates
the rules and regula- tions that govern
the collection of taxes in the United
States?
18. Which of the following is NOT a reason for the the theoretical necessity of
a common
integration of worldwide accounting company's internal
stan- dards? data- base of
financial
19. The International Accounting information and do
Standards Board (IASB) is charged their own
with developing worldwide customized
accounting practices? analysis of a firm's
perfor- mance.
20. With the current state of information
tech- nology, investors outside a
company are now allowed access to a
3/
47
, C213 WGU OA PREP EXAM QUESTIONS &
ELABORATED COMPLETE SOLUTIONS
t of accounting standards
ue False
21. Sarbanes-Oxley Act
4/
47
ELABORATED COMPLETE SOLUTIONS
1. The ability a company has to pay its
Liquidity
debts in the short run is its
2. Which of the following is a measure
Debt ratio
of the liquid position of a
corporation?
Debt Ratio
3. Which of the following ratios is used
to mea- sure a firm's leverage?
Return on Equity
4. Which of the following ratios is used
to mea- sure the profit earned on each
dollar invested in a firm?
Investors and creditors
5. The emphasis in financial accounting is
on which of the following external user
groups? Management
6. The primary internal group that uses
ac- counting information is
7. Internal reports are generally used by Management
8. Which of the following is NOT an Management
external user of financial
information?
It is a government agency
9. Which of the following is NOT true of
the Fi- nancial Accounting Standards
Board (FASB)?
10. Generally accepted accounting principles are Developed by accounting
rule makers
1/
47
,C213 WGU OA PREP EXAM QUESTIONS &
ELABORATED COMPLETE SOLUTIONS
11. The initials GAAP stand for Generally Accepted Accounting
Princi- ples
12. The current standard-setting board Financial Accounting Standards
for ac- counting in the private sector Board (FASB)
is the
2/
47
,C213 WGU OA PREP EXAM QUESTIONS &
ELABORATED COMPLETE SOLUTIONS
13. The organization that develops worldwide ac- International Accounting
Standards
counting standards is the Board (IASB)
14. The initials CPA stand for Certified Public Accountant
15. Which of the following is NOT a Making management decisions
service typ- ically provided by large
public accounting firms?
16. Standards established by the International Financial Reporting
International Accounting Standards Stan- dards
Board are referred to as
17. Which of the following is the Internal Revenue Service
government agency that stipulates
the rules and regula- tions that govern
the collection of taxes in the United
States?
18. Which of the following is NOT a reason for the the theoretical necessity of
a common
integration of worldwide accounting company's internal
stan- dards? data- base of
financial
19. The International Accounting information and do
Standards Board (IASB) is charged their own
with developing worldwide customized
accounting practices? analysis of a firm's
perfor- mance.
20. With the current state of information
tech- nology, investors outside a
company are now allowed access to a
3/
47
, C213 WGU OA PREP EXAM QUESTIONS &
ELABORATED COMPLETE SOLUTIONS
t of accounting standards
ue False
21. Sarbanes-Oxley Act
4/
47
